Regulator publishes final rent standard after convergence levels confirmed

The new rent standard also confirms landlords will be able to further increase the weekly rent on social rent homes that are currently below ‘formula rent’. 

This mechanism of rent convergence is being reintroduced after a 10-year hiatus, with the aim of aligning rents for social rented homes gradually.

As unveiled by the government last week alongside the CPI +1% increase, rents for these homes can increase by up to £1 more each week from 1 April 2027.

From 1 April 2028, the rents can increase by up to £2 per week, until formula rent is reached.

Last week, MHCLG said restricting rent increases in this way will provide a “gradual path for rents to converge over time” and “strikes the right balance overall”.

In 2025, 57% of private registered providers’ (PRPs) social rented homes (1.2 million) were below formula rent, and 99.9% of social rented homes held by local authorities (1.5 million), MHCLG said.

In its consultation response to rent convergence, published last week, officials said the convergence policy will generate an additional £2.7bn in rental income for PRPs, and £3.1bn in rental income for councils over the 10-year rent settlement.

Fiona MacGregor, chief executive of the RSH, said: “We are pleased to be able to finalise our rent standard based on the direction from the government.

“This will bring more certainty to the sector, so landlords can plan for their investment in the quality of existing homes and more homes for the future.”